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Level 1

My wife and i cashed in our traditional ira. there zero lossess and zero gains. do we still have to pay taxes as ordinary income?

 
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Level 1

My wife and i cashed in our traditional ira. there zero lossess and zero gains. do we still have to pay taxes as ordinary income?

Yes.  Gains and losses, interest, and dividends within retirement accounts are meaningless.   Money going in was never taxed, so it's taxed on the way out. You should receive a 1099-R for this purpose.

The opposite is true for regular brokerage accounts, which is why they send out 1099-B, 1099-INT, and 1099-DIV.

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Level 1

My wife and i cashed in our traditional ira. there zero lossess and zero gains. do we still have to pay taxes as ordinary income?

Yes.  Gains and losses, interest, and dividends within retirement accounts are meaningless.   Money going in was never taxed, so it's taxed on the way out. You should receive a 1099-R for this purpose.

The opposite is true for regular brokerage accounts, which is why they send out 1099-B, 1099-INT, and 1099-DIV.

View solution in original post